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Nov 16, 2020Student Loan Interest
If you pay interest on a qualifying student loan, you can take the student loan interest deduction. This deduction is an adjustment to your income, so you do not need to itemize your deductions (as long as it doesn’t reach the annual limit of your filing status). You can claim the deduction if: You paid […]
adminNov 16, 2020Teaching Expenses
In order to deduct your teaching expenses, you must be an eligible K-12 educator. You must also teach at least 900 hours in a school year. Here are some examples of professions that count: Principal Counselor Instructor Teacher Teacher’s Aide When filing your tax return, you can deduct up to $250. If you’re married filing […]
adminNov 16, 2020HSA & MSA Deductions and Contributions
If you are enrolled in a high deductible health plan, you have a health savings account (HSA). Prior to HSAs, people who are self-employed could contribute to a medical savings account (MSA) if they had a high deductible health plan. This is located on Form 1099-SA. If you or your employer contributed to a Health […]
adminNov 16, 2020Unreimbursed Job Expenses
If you have out-of-pocket job expenses, you can do so on your tax return. This will be located on Form 2106. However, prior to tax year 2018, taxpayers can deduct unreimbursed expenses that exceed 2% of their adjusted gross income. This is located on Schedule A for your itemized deductions. Due to the Tax Cuts […]
adminNov 16, 2020Retirement Income
When retired, you may receive social security benefits or pension income. Social security benefits are received on Form SSA-1099. Form 1099-R is used for pension income. All statements must be reported on your federal tax return. Whether or not it’s taxable, is dependent on how the money was put into the pension plan. It would […]
adminNov 16, 2020Alimony
Spousal support (alimony) is fully taxable in the hands of the former spouse or common-law partner. Beginning in 2019, if a divorce or separation agreement was executed after Dec. 31, 2018, the alimony is no longer included in a spouse’s income or deductible. It also applies to separation agreements that were modified after Dec. 31, […]
adminNov 16, 2020Reporting Cancelled Debts
If you have debt is forgiven or discharged for less than the full amount you owe, the debt is considered canceled in the amount that you don’t have to pay. Additionally, if the creditor cannot collect, or gives up on collecting, you will have a cancellation of debt for the amount you’re obligated to pay. […]
adminNov 13, 2020Gambling Winnings
Gambling winnings are fully taxable and must reported on your taxes. Gambling income includes but isn’t limited to the following: winnings from lotteries raffles horse races casinos cash winnings and the fair market value of prizes, such as cars and trips The payer must issue you a Form W-2G, Certain Gambling Winnings if you receive […]
adminNov 13, 2020Reporting Capital Gains
If you own something and use it for personal or investment purposes, it is a capital asset. If you sell a capital asset, the difference of the adjusted basis of the asset and the sale will lead to either a capital gain or loss. This is reported on Schedule D of your federal tax return. […]
adminNov 12, 2020Rental & Real Estate Income
Most individuals operate on a cash basis, which means they count their rental income as income when they actually or constructively receive it, and deduct their expenses when they pay them. Rental income is any you receive for the use or occupation of property. This is reported on a form Schedule E. You must report […]
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